Consumer Behavior

Instructor:
Dr. Ravi Shanker

Course: Marketing Management

 Objectives
1. Understand basic model of CB
2. Understand decision making process
3. Appreciate risk, choice criteria, satisfaction,
dissonance
4. Recognize influence of individual factors
5. Understand role of culture & subculture
6. Identify social class influences
7. Recognize influence of reference groups
8. Key aspects of joint decision making
 Consumer Buying Behavior
Consumer Buying Behavior refers to the
buying behavior of final consumers -
individuals & households who buy goods
and services for personal consumption.

The central question for marketers is:

“How do consumers respond to various
marketing efforts the company might
use?”
 Initiator

User Buying
Influencer
Decision

Buyer Decider
 Model of Buyer Behavior
Environmental Marketing Stimuli
Stimuli Environmental &
Product
Marketing Stimuli
Economic Price
Technological Place
Political Promotion
Cultural
Buying Decision
Buyer Process
Characteristics Problem Recognition
Cultural
Buyer’s Black Box Information Search
Social Evaluation
Personal Decision
Psychological Post purchase
behavior

Product Choice Purchase

Buyer’s Response Timing
Brand Choice
Purchase
Dealer Choice Amount
 Five - Stage Model of the Buying Process

Problem Information Evaluation of Purchase Post purchase

recognition search alternative decision behavior
1. Personal 1. Post purchase
a. Friends Purchase
satisfaction
b. Family intention
2. Post purchase
2. Commercial action
3. Public Media, a. Handling
Fairs etc Attitudes Unanticipateddissatisfaction
4. Experimental of others situational b. Post Purchase
(Handling, Using, variables use and Disposa
Examining)
 INVOLVEMENT

PRICE HIGH LOW

LOW INV. HIGH INV. LOW

PRICE LOW PRICE LOW

HIGH INV. HIGH ?

PRICE HIGH INV. LOW
PRICE HIGH
Decision Making: Situations

Routine Limited Extensive

Response Decision Decision
Behavior Making Making

Less More
Involvement Involvement
 Decision Making: Problem
Recognition & Involvement

High Involvement No buy:

Stop/Restart
Problem Info
Eval Choice
id search Buy:
Consume/Eval

Low Involvement
Consume
Problem Limited
Choice Limited
id search
Eval
 Factors Influencing Consumer Behavior

Cultural
Social Personal
Culture Age and Psycho-
Reference life-cycle logical
groups
Occupation Motivation
Sub- Economic Perception Buyer
culture Family situation Learning
Lifestyle Beliefs and
Social Roles Personality attitudes
class and and
status self-concept
CULTURE :
As a child grows he acquires from his environment a
set of beliefs, values & customs _ which constitutes
culture.

These beliefs, values & customs go deeper & deeper

as the child grows-culture is learned as a part of
social experience
SUBCULTURE:
The various sub-categories within a culture can be
identified based on religion, age, sex, occupation,
social class, geographical location etc.
Each culture consist of smaller subcultures
providing specific identification & socialization:
Eg.,
-Nationality groups
-Geographical groups
-Religious groups
-Racial groups
SOCIAL CLASS:
People donot live with uniformly equal status.
Every society is stratified into different levels
of social status, and it is these different
levels, or social classes, which give rise to
many of our social motivations.
In USA, Six categorizations based on
occupation, education, housing, sources &
amount of income:
 Factors Influencing Consumer Behavior

Cultural
Social Personal
Culture Age and Psycho-
Reference life-cycle logical
groups
Occupation Motivation
Sub- Economic Perception Buyer
culture Family situation Learning
Lifestyle Beliefs and
Social Roles Personality attitudes
class and and
status self-concept
 REFERENCE GROUPS :
Reference groups : a reference group is any
aggregation of people who influence an
individual’s attitude & behaviors.
A person’s reference groups consists of all
the groups that have a direct (face-to-face) or
indirect influence.

PRIMARY CONTINUOUS INTERACTION-

INFORMAL FAMILY,FRIENDS,COWORKERS,NEIGHBOURS)
SECONDARY
(LESS CONTINUOUS INTERACTION -
FORMAL PROFESSIONAL, TRADE UNION/RELIGIOUS
GROUPS)
ASPIRATIONAL GROUPS
GROUPS DISASSOCIATIVE GROUPS
 FAMILY
1. Family orientation : from parents one acquires
an orientation towards religion, politics,
economics, personal ambition, self-worth and
love.

2. Family domination : (for various products)

- Husband dominant (lnsurance, automobile, etc)

- Wife dominant ( kitchenware, etc.)
- Equal ( vacation, outside entertainment)
 ROLES & STATUSES
A person participates in many groups family, social system,
work place.

A person’s position in each group can be defined in terms

of roles & status

A role consists of the activities that a person is expected to

perform according to the persons around him/her.

Each role carries a status reflecting the general esteem

accorded to it by society.

People choose products that communicate their role and

status in society.
 Factors Influencing Consumer Behavior

Cultural
Social Personal
Culture Age and Psycho-
Reference life-cycle logical
groups
Occupation Motivation
Sub- Economic Perception Buyer
culture Family situation Learning
Lifestyle Beliefs and
Social Roles Personality attitudes
class and and
status self-concept
AGE & FAMILY LIFE CYCLE STAGE
O CHILDHOOD
I BACHELORHOOD
II HONEYMOONERS
III PARENTHOOD
IV FOST PARENT HOOD
V DISSOLUTION
LIFESTYLE:
DIFFERENT FROM SOCIAL CLASS & PERSONALITY
•IT’S THE PATTERN OF LIVING
•EXPRESSED IN HIS ACTIVITIES, INTERESTS &
OPINIONS (AIO)
A=Work, Hobbies, Entertainment, Shopping
Vacation
I=Family, Home, Job, Fashion
O=Themselves, special issues
 PERSONALITY
The dynamic organization within the
individual of those psychological systems
that determine his unique adjustment to
his environment.
- Alport (Gordon)

Personality is the sum total of ways in

which an individual reacts & interacts with
others. (This is most often described in
terms of measurable personality traits that
a person exhibits.)
PERSONALITY
All of an individuals’ characteristics (physical,
emotional, intellectual etc) as they appear to othrs

C O M P U L S IV E N E S S C O M P U L S IV E N O N C O M P U L S IV E
G R E G A R IO U S N E S S EXPRO V ERT IN T R O V E R T
AUTONOM Y D EPEN D EN T IN D E P E N D E N T
N E U R O T IC IS M N E U R O T IC ST A B LE
L E A D E R S H IP LEA D ER FO LLO W ER
A M B IT IO U S N E S S H IG H L O W A C H IE V E R
A C H IE V E R
SELF CONCEPT:
Self image: all of us carry a complex mental
picture of ourselves
Actual self concept: how one views oneself
Ideal self concept: how one would like to
view oneself
Others self concept: how one thinks others
see him/her
 Factors Influencing Consumer Behavior

Cultural
Social Personal
Culture Age and Psycho-
Reference life-cycle logical
groups
Occupation Motivation
Sub- Economic Perception Buyer
culture Family situation Learning
Lifestyle Beliefs and
Social Roles Personality attitudes
class and and
status self-concept
MOTIVATION:
It is the driving force within individuals that
compel them to action
This driving force is subconscious and the
outcome of certain unfulfilled needs.
 Consumer Motivation
conflict

TYPE DECSRIPTION SAMPLE SITUATION

Toothpaste
Approach-Approach Two objectives desired,
but the consumer Sex appeal with
Health with breath freshener
cannot have both
fluoride

The consumer must

Avoidance-Avoidance choose between two Muffler repair
undesirable alternatives
Depleted Bothersome
savings exhaust noise
The consumers’ goal
Approach-Avoidance feature both positive College education
and negative aspects
Hard work Greater earning
and expense opportunities
Individual Factors: Needs

Self-Actualization

Esteem

Social

Safety

Physiological
 Simple model of motivated
behavior

acts creating
Stimulus Basic need Motive
upon
causing

Response resulting Goal-directed

behavior in search for
incentive

yielding
Satisfaction Dissatisfaction
PERCEPTION:
It is the process by which buyers select,
organize & interpret information into a
meaningful impressions in their mind.

Perception is also selective in which a small

part is perceived out of the total……” what is
perceptible”
 Individual Factors:
Perception
 Selective perception
 Selective exposure
 Selective attention
 Selective
interpretation
 Stimulus factor
 Context
 Individual factor That fish was at least 8 pounds
LEARNING:
When people act they learn
Learning describes changes in an
individuals behavior arising from
experience.
Most human behavior is learnt
behavior
BELIEF:

A belief is a descriptive thought that a person

holds about something.
ATTITUDES:
An attitude is a learned predisposition to respond
in a consistently favorable or unfavorable manner,
with respect to a given object.
Attitude is a dispositional term indicating that
attitudes manifest themselves in behavior only
under certain conditions:
An attitude describes a person’s enduring
favorable or unfavorable cognitive evaluations,
emotional feelings & action tendencies towards
some object or idea.
 Attitudes: 3 Stages of Readiness
Cognitive: does a product Affective: does that
have a particular consumer like a
attribute the consumer particular attribute?
wants?

Behavioral: is the
consumer likely to buy
the product?
 RESPONSE HIERARCHY
ACTION
BEHAVIOURAL ACT

CONVICTION

PREFERENCE
AFFECTIVE FEEL

LIKING

COGNITIVE KNOW KNOWLEDGE

AWARE

UNAWARE
SOCIAL CHARACTER IS A
PERSONALITY TRAIT THAT RANGES
FROM:
INNER DIRECTEDNESS TO OUTER
DIECTEDNESS.

Inner directed tends to rely on their

own inner values and standards in
evaluating new products & are more
likely to be innovators.
 Review
 Understand basic model of CB
 Understand decision making process
 Appreciate risk, choice criteria,
satisfaction, dissonance
 Recognize influence of individual
factors
 Understand role of culture & subculture
 Identify social class influences
 Recognize influence of reference
groups
 Key aspects of joint decision making